China on Track to See 430 – 490 A-share IPO’s in 2021 Raising up to 480B Yuan: PWC Report

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Analysts from Pricewaterhouse Coopers (PWC) expect funds raised via A-share IPO’s in China to rise to a decade-long high in 2021.

“The A-share IPO financing amount could rise to another 10-year high [in 2021]” said Liang Weijian (梁伟坚), partner at PWC China, at a press conference held in Beijing on 4 January for the release of 2020 IPO data.

“We expect the number of IPO’s to reach 430 – 490, raising funds of between 450 billion – 480 billion yuan (approx. USD$75 billion).”

Despite the impacts of the COVID-19 pandemic China saw a total of 395 A-share IPO’s in 2020, for a YoY rise of 97%. These IPO’s raised 471.9 billion yuan, for a YoY increase of 86% and the highest level since 2011.

PWC believes the launch of the A-share registration system in China has played a key role in accelerating the pace of A-share IPO’s.

“While the Novel Coronavirus pandemic has had an impact on the global economy, because China’s domestic economy rapidly and steadily recovered, and because of the success of stage-based registration system reforms, A-share IPO activity was not only unaffected, but instead displayed a positive trend of activity,” said Liang.

“Looking to 2021, A-share IPO’s will continue to maintain a positive development momentum, benefiting from the Dual Circulation policy and the central government’s 14th Five Year Plan.”

PWC’s IPO Projections for 2021

BoardNo. of IPO’sFund-raising amount (billion yuan)No. of IPO’s in 2020Fund-raising amount in 2020 (billion yuan)
Shanghai mainboard100 – 110100 – 110 89122.8
Shanghai STAR board150 – 170200 – 210145222.6
Shenzhen SME board55 – 60405437.2
Shenzhen ChiNext board125 – 150110 – 12010789.3
Total430 – 490450 – 480395471.9

As of the final trading day of 2020 China was host to 4142 A-share companies, of which 1795 were listed in Shanghai and 2347 listed in Shenzhen.

China’s ten largest A-share IPO’s in 2020 raised a total of 141.7 billion yuan, accounting for 30% of the total fund-raising amount.

Semiconductor Manufacturing International Corporation (SMIC) staged the biggest IPO in 2020, raising 53.23 billion yuan, and accounting for 37.54% of the the fund-raising sum for China’s ten biggest IPO’s that year.

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